Car Costs
What is the price a dealer is asking for a vehicle called?
What is the asking price or list price?
What should you create before deciding how much car you can afford?
What is a budget?
What does APR stand for?
What is Annual Percentage Rate?
What should you do before buying a car from a dealer?
What is research the vehicle and compare prices?
What protects you financially if you're involved in an accident and have covered losses?
What is Auto Insurance?
What is a down payment?
What is money you pay toward the car upfront, reducing the amount you need to borrow?
True or False: If you can afford the monthly payment, you can automatically afford the car.
What is False?
What does a lender do?
What is provides money that you agree to repay, usually with interest?
What is a test drive?
Driving a vehicle before purchasing it to evaluate how it operates and feels?
What is an insurance permium?
What is the amount you pay for insurance coverage?
Name three costs of owning a car besides the car payment.
What are insurance, gas, maintenance, repairs, registration, taxes, etc.?
Your take-home pay is $2,500 per month. Your car payment is $400, insurance is $180, and gas is $1`50. How much are your monthly car-related costs?
What is $730?
If you borrow $15,000 to buy a car, what is the $15,000 called?
What is the principal?
Why is it important to compare several dealerships or sellers?
What is prices, fees, financing, and available vehicles can differ?
What is a deductible?
What is the amount you generally pay out of pocket for a covered claim before the insurance company pays its portion.
What does MSRP stand for?
What is Manufacturer's Suggested Retail Price?
Why should you leave room in your budget for car repairs?
What is repairs are unpredictable and can be expensive?
Which usually costs more overall: a 3 year loan or a 7 year loan, assuming the same basic interest rate and no other differences?
What is the 7 year loan, because you generally pay interest for longer?
What does it mean to negotiate the price of a car?
What is discussing the price with the seller and attempting to reach a better deal?
Name two things that can affect the cost of car insurance.
What is driving record, age, location, vehicle, coverage, mileage, claims history, etc.
A car costs $20,000, but after taxes, fees, financing, and other costs you pay $25,000. What does this demonstrate?
What is the difference between the vehicle's price and its total cost?
Which is generally smarter financially: buying a car that barely fits your budget or buying one that leaves you plenty of money for savings and other expenses?
What is buying one that leaves room in the budget?
Why can a very low monthly car payment be misleading?
What is the loan may be stretched over a much longer period, resulting in more interest a higher total cost?
A salesperson asks, "How much can you afford each month?" Why might you want to focus on the total price instead?
What is a dealer can make a monthly payment look affordable by extending the loan term or hanging other terms.
Why might a $25,000 car actually cost much more than $25,000 over the years?
What is interest, insurance, fuel, maintenance, repairs, taxed, registration, and depreciation.